New version of Solvency II Tripartite Template (TPT V7.0)
On 17 September 2024, FinDatEx released the new Solvency II TPT Version 7.0. This version incorporates changes from the Solvency II Regulation that were introduced earlier in 2024. IDS incorporated these updates into the Solvency II Quantitative Reporting Templates (QRT). They follow the amendments to (EU) 2015/2450 by (EU) 2023/894 dated 4 April 2023. Additionally, the new TPT version includes various content improvements and clarifications in the field definitions.
New version 7.0 of the TPT
TPT v7.0 contains editorial changes and more precise field definitions, with a focus on content adjustments.
NACE code
The NACE code, a standard from Eurostat (EU’s statistical office) for classifying companies' economic activities, is a key element in the TPT. Insurers must provide this code to the relevant supervisory authority like EIOPA at the European level. This is regulated in the Implementing Regulation (EU) 2015/2450.
The previous classification scheme has been updated to NACE Rev. 2.1 (see Eurostat of 10 February 2023 = LINK). However, it is not yet clear when all companies will be reclassified, and when the new codes will be fully available from the relevant market data sources.
For now, both NACE codes can be provided in the TPT: the old version in field '54_Economic activity' and the new version in the new field '148_Economic activity_NACE2.1'. At least one of these fields must be filled in, preferably NACE 2.1.
Information on expected maturity
The expected maturity of a security may differ from the contractual maturity. To address this, three new fields have been introduced:
- '143_expected_maturity_date',
- '144_modified_duration_to_expected_maturity_date' and
- '145_expected_credit_sensitivity'.
Additionally, the well-known definitions in fields 90, 91 and 92 have been clarified. This helps differentiate from the contractual maturity information.
Bail-in rule
The new field '142_Bail-in_Rule' classifies investments issued by banks in EU Member States. This rule applies to debt instruments, such as bonds, that are partially converted into equity in the event of the issuer’s default. This means that investors are more exposed to the potential default risk of banks and cannot rely on a 'government bailout' in times of crisis.
This label does not automatically apply to certain types of investment. For others, it depends on the specific issuance terms and conditions whether the bail-in feature is relevant. Starting in 2024, the Implementing Regulation (EU) 2023/894 of 4 April 2023 mandates that this information must be provided to the supervisory authority.
Payment-in-kind (PIK)
Another new field is '146_PIK', but this is not due to regulatory changes. Payment-in-kind refers to interest, dividends or similar items that are not paid in cash but in kind, such as additional securities or equity instruments. FinDatEx provides its own guidelineswhich emphasises that payment-in-kind is mainly used in private equity funds.
Custodian information
The new fields '140_Custodian_identification_code' and '141_Type_of_custodian_identification_code', require insurers to provide a unique code for the custodian, ideally the LEI. This change stems from the Implementing Regulation (EU) 2023/894 of 4 April 2023.
Infrastructure investments
The TPT has long included the field '132_Infrastructure_investment' to classify investments in infrastructure. The aim is to determine if the investment fits into the relevant category and, if so, whether it is an investment in debt or equity instruments, in projects or companies.
The field '147_Infrastructure_investment_additional_QRT' adds10 additional characteristics to the classification. The most important of these are guarantees provided by government or supranational entities. This change to the TPT is in response to additional requirements of the new Implementing Regulation (EU) 2023/894.
What happens next?
TPT V7.0 can be used with an effective start date of 31 March 2025. During the transition period in Q2 2025, both V6.0 and V7.0 can be used in parallel.
However, starting 30 June 2025, it is recommended to exclusively use V7.0.
How can IDS help?
IDS can help you meet the challenges of Solvency II reporting. Our experts are ready to implement the necessary changes to produce both TPT V6.0 and V7.0, effective from 31 March 2025.
